LABD vs QQQ
Direxion Daily S&P Biotech Bear 3X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | LABD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.18% | |
| AUM | $61M | $496.3B | |
| Dividend Yield | 4.50% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | -68.57% | +17.13% | |
| 1Y Return | -87.99% | +24.75% | |
| 3Y Return (annualized) | -64.69% | +24.85% | |
| 5Y Return (annualized) | -47.94% | +14.21% | |
| Volatility (annualized) | 87.4% | 30.6% | |
| Max Drawdown | -100.0% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Mar 10, 1999 |
LABD vs QQQ Performance
Direxion Daily S&P Biotech Bear 3X ETF (LABD) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LABD returned -87.99% while QQQ returned +24.75%. Year to date, LABD is down 68.57% versus a gain of 17.13% for QQQ.
Over three years, LABD compounded at -64.69% per year against +24.85% for QQQ; over five years the annualized figures are -47.94% and +14.21% respectively. Across the full 11-year window we track, QQQ has the edge at +13.04% annualized vs -56.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LABD has been the more volatile fund, with annualized monthly volatility of 87.4% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -100.0% for LABD and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LABD charges 1.07% per year while QQQ charges 0.18%. On a $10,000 position that is $107 vs $18 annually, a gap of $89 per year that compounds over a long holding period. On income, LABD currently yields 4.50% against 0.44% for QQQ.
Holdings Overlap
LABD and QQQ share 0 holdings out of 106 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LABD or QQQ?
LABD has an expense ratio of 1.07% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, LABD or QQQ?
Over the past year LABD returned -87.99% vs +24.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), LABD annualized -56.25% vs +13.04% for QQQ. Past performance does not guarantee future results.
Which is riskier, LABD or QQQ?
LABD has been the more volatile fund at 87.4% annualized versus 30.6% for QQQ. Worst drawdown: LABD -100.0% vs QQQ -83.0%.
Should I hold both LABD and QQQ?
LABD and QQQ have a monthly-return correlation of -0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LABD and QQQ?
LABD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, LABD or QQQ?
LABD yields 4.50% while QQQ yields 0.44%, so LABD currently pays the higher dividend yield.
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